Statement $1-$ In a partnership business, it is extremely important that the four basic elements: a$)$ relationship, b$)$ between persons, c$)$ carrying on business in common, and $4)$ with a view to profit, in the definition of partnership are present in order to determine whether that person is a partner or not. Case: A group of persons, including a corporation, purchased a piece of development property with a view to earn profit in the future. One of the co$-$owners, Mr$.$ M$,$ entered into an exclusive listing agreement with a real estate agent and without the consent and agreement of other co$-$owners. The group sold the property and shared the net profit. The real estate agent sued all the co$-$owners for its commission and claimed that, since it is a partnership, all co$-$owners are jointly liable on the contract made by Mr$.$ M$.$ From the choices below, please choose the right answer.

a$.$

Statement $1$ is true. Mr$.$ M breached a fiduciary duty for entering into a contract without the consent of other co$-$owners. The co$-$ownership of the property does not fall under the definition of a partnership as it lacks the four basic elements of the partnership mentioned in the statement $1.$ Therefore, only Mr$.$ M is liable, and the other co$-$owners are not liable.

b$.$

Statement $1$ is false. Mr$.$ M does not breach a fiduciary duty for entering into a contract without the consent of other co$-$owners because it was not a formal partnership business. However, since the group benefited from the service of the real estate agent, therefore, all co$-$owners are liable.

c$.$

Statement $1$ is false. Mr$.$ M breached a fiduciary duty for entering into a contract without the consent of other co$-$owners. Sharing of profit is sufficient proof of partnership business. Therefore, all co$-$owners are liable.

d$.$

Statement $1$ is true. Mr$.$ M breached a fiduciary duty for entering into a contract without the consent of other co$-$owners. Since it is a partnership, all co$-$owners are jointly liable for the commission.